1.1 Growth of the Café Industry in IndiaThe coffee market in India has been growing due to the demand for Ready to Drink coffee and has become a part of an individual’s daily consumption basket. Due to changing cultures, consumers are becoming aware of domestic and foreign brands, which are boosting the consumption levels.

The export promotion schemes and other subsidies by the GOI, and increasing trend of eating out coupled with the rising share of young population has driven the market. Well-established coffee shop chains, such as Cafe Coffee Day (CCD) and Barista, enhanced their pan-India presence in the latter part of the review period. In 2010, Cafe Coffee Day and Barista had 970 and 200 stores, respectively, and they aim to continue expanding in the next few years. Meanwhile, several relatively new players, such as Costa Coffee, Coffee Bean, Gloria Jean’s and Java Coffee, are trying to establish a

footing in Indian coffee retailing. Both these factors drove on-trade consumption of fresh coffee beans in 2010, with volumes growing by 12%. On-trade sales have emerged as the primary sales channel for fresh coffee beans, in the absence of any appreciable off-trade consumption.

In 2010, the average bill amount at coffee outlet was between rupees 135 and 150. This is expected to rise to rupees 245 by 2016. With customers paying significant amount for their coffees, they are also expecting a lot from an outlet. Factors such as menu, ambience, service and brand name are playing an important role while choosing a coffee outlet.

Indian Coffee Chains market is quite mature which is evident from the fact that Café Coffee Day alone maintains more than 1000 Café’s in 141 cities in India. This forms the main focus of this project.

1.2 COPORATE PROFILECafé Coffee Day, A division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), having its headquarters in Chikkamagaluru, Karnataka. It opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe retail chain in India – with over 1000 Café’s in 141 cities.

“Running café is a hospitality business and one needs to create the right ambiance and experience and back it up with strong logistics”Café coffee day is a 750 crores ISO 9002 certified company has over 5000 acres of coffee states which is second largest in Asia registered as a social service provider to people. Large numbers of coffee day cafes are located in Bangalore. The cafe chain has had much success riding, and to some extent creating, the cafe culture wave that swept across metropolitan India following strong economic growth resulting in an increase in youth spending power. It has even tied up with World Space and Micro sense to enable its cafes with satellite radio and Wi-Fi, respectively. Its...

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